Metcash Delivers Solid 1H26 Performance Driven by Strategic Discipline and Strong Cashflow
Metcash Limited (ASX: MTS) delivered a resilient first-half FY26 performance supported by disciplined execution and strong momentum across Food, Liquor and Hardware despite mixed trading conditions. Group revenue increased to AU$8.5 billion (+0.1%), or AU$9.6 billion including charge-through (+0.4%), with sales growth across all pillars except tobacco. Group EBITDA rose 2.0% to AU$367.2 million, while EBIT softened 2.4% to AU$240.2 million due to one-off strategy costs, reduced Liquor earnings and margin pressure in Hardware.
The Food segment remained the standout, achieving higher earnings despite a steep 35% decline in tobacco revenue following regulatory changes. Liquor sustained market share growth, although lower wholesale price inflation and increased operating costs impacted earnings. Hardware performance improved, with Total Tools helping restore EBIT leverage in the second quarter. Operating cashflow surged 59.9% to AU$262.3 million, strengthening balance sheet flexibility, while net debt closed at AU$598.6 million and leverage remained near 1.0x. A fully-franked interim dividend of 8.5 cents reflects confidence in cash generation. Rapid adoption of the B2B “Sorted” marketplace and positive early 2H26 trading support long-term growth.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Metcash Delivers Solid 1H26 Performance Driven by Strategic Discipline and Strong Cashflow
Metcash Limited (ASX: MTS) delivered a resilient first-half FY26 performance supported by disciplined execution and strong momentum across Food, Liquor and Hardware despite mixed trading conditions. Group revenue increased to AU$8.5 billion (+0.1%), or AU$9.6 billion including charge-through (+0.4%), with sales growth across all pillars except tobacco. Group EBITDA rose 2.0% to AU$367.2 million, while EBIT softened 2.4% to AU$240.2 million due to one-off strategy costs, reduced Liquor earnings and margin pressure in Hardware.
The Food segment remained the standout, achieving higher earnings despite a steep 35% decline in tobacco revenue following regulatory changes. Liquor sustained market share growth, although lower wholesale price inflation and increased operating costs impacted earnings. Hardware performance improved, with Total Tools helping restore EBIT leverage in the second quarter. Operating cashflow surged 59.9% to AU$262.3 million, strengthening balance sheet flexibility, while net debt closed at AU$598.6 million and leverage remained near 1.0x. A fully-franked interim dividend of 8.5 cents reflects confidence in cash generation. Rapid adoption of the B2B “Sorted” marketplace and positive early 2H26 trading support long-term growth.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au